El-/~ Emerald Ash Borer (EAB) - Financial Implications

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1 _ BRAMPTON brampton.ca FlOWCr GtV El-/~ Report Committee of Council - Budget The Corporation of the City of Brampton Date: November 29, 2013 File: R22.EM COMMITTEE OF COUNCIL DATE: ^ecernbcs kj UJ2j2 l% Subject: Emerald Ash Borer (EAB) - Financial Implications Contact: Gary Linton, Manager of Central Operations, Parks Planning & Infrastructure Services (905) Overview: The Emerald Ash Borer continues its spread throughout Ontario and Quebec and has now been found in all areas of the Region of Peel. As assessed by a qualified arborist, EAB-related tree removals must be completed prior to the tree becoming structurally unsafe months following its death. Selected bi-annual ash tree injections will continue into 2014 although the rapid spread of the insect may bring an end to the injection of additional trees beyond An intensive public education campaign on EAB was conducted through various media, as well as presentations at 25 local events during EAB related expenses will total approximately $26 million ($16 million for tree removal only) to deal with Brampton's estimated 30,000 ash trees over the next five years. Current staffing levels to manage tree-related issues in Brampton falls well short of similarly sized GTA municipalities by 60% or more. Increasing service requests and storm-related damages continue to impact the City's ability to provide service response. Several contracted tree companies have been secured to assist with tree-related issues such as removals, stumping, planting, customer service requests. Upper tier governments do not provide any funding assistance for EAB-related mitigation initiatives. $527, will be received for tree planting as compensation for lost trees during construction of additional piping for Trans Canada Pipeline. EAB mitigation activities remain unfunded; financial scenarios are included in this report.

2 Fl-i-1 Recommendation: 1. That the report from Gary Linton, Manager of Central Operations, Parks Planning & Infrastructure, dated November 29, 2013, to the Committee of Council - Budget meeting of December 6, 2013, re: Emerald Ash Borer (EAB) - Financial Implications (File # R22.EM), be received. Background: Emerald Ash Borer Adult and Larvae The Emerald Ash Borer (EAB) continues its unchecked spread throughout Ontario and Quebec. In late July 2013, EAB was confirmed by the Canadian Food Inspection Agency (CFIA) in the Orangeville area, indicating that the insect has established a foothold throughout Region of Peel from Lake Ontario to its northernmost boundary. All major municipal areas throughout southwestern Ontario are now dealing with EAB issues and significant ash tree losses.

3 ei-i-i EAB Spread - September 2013 Canada City staff has been challenged throughout the 2013 growing season by the rapid and unexpected increase in the spread of EAB as well as several severe weather events which resulted in hundreds of additional (Non EAB) service requests. To augment internal resources dealing with city wide tree issues, staff has acquired additional contracted tree maintenance in the form of pruning crews to directly deal with a wide range of customer service issues as well as contractors specializing in providing removal services focusing on those trees that have died due to EAB. Tree removal priorities are based on the time the tree has stood following its death and staff is currently reviewing all trees that have lost more than 60% of the crown for prompt removal. As of September 23, 2013, arrangements have been made for the removal of more than 1000 trees (of an estimated 30,000 City ash trees) prior to them becoming structurally unstable and dangerous. Staff has completed injections of TreeAzin into 680 ash trees in 2012 which were selected for their overall size, health and location value. All injections by contractors or internal staff are completed in July and August as required by provincial legislation. An additional 1530 trees were selected for injection in The rapid spread of the insect will most likely end any future injection programs beyond 2014 as all untreated ash will begin to quickly decline due to EAB feeding damage. Depending on capacity, staff are hoping to inject an additional trees next year will be the first year

4 where staff must re-inject previously treated trees (680 completed in 2012) to maintain an active chemical presence within the tree. Communication: In addition to the studies, inventories and benchmarking completed to determine an appropriate direction with regards to EAB, staff has committed to an ambitious communication strategy which includes advertisements and information through all forms of media as well as providing presentations at over 25 public events in Current Situation: While funding strategies vary, GTA municipalities are forecasting removal and reinstatement costs on average to be $800.00/tree (which includes removal, stumping and replacement). Brampton's current financial responsibility for an estimated 28,000 30,000 trees would be approximately $26,000, ($17million for removals and $10 million for replacements) over the next 4-5 years. Although this total could be reduced by not providing 1:1 replacements, tree removals will quickly become a nondiscretionary expense as trees begin to decay following the death of the tree. The decay process for ash (to the point of compromised structural stability) is predicted to take months following defoliation. If significant decay is allowed to occur, trees are not only potential liabilities but they also become far more expensive to remove due to compromised structures. Although weather and several other natural factors affect the spread of this insect and the resulting mandatory actions that must be taken, the following table forecasts (in 2013 dollars) those expenses (discretionary and non-discretionary) that will be incurred by the Cityof Brampton to facilitate EAB mitigation.

5 EI-l-5 Forecast of EAB Expenses Year Expense Action 2014 $1,400, * 3500 ash removals averaging $400/tree 2014 $1,800, replacement $400/tree 2014 $336, * 1680 tree injections averaging $200/tree 2014 $195, * 3 contract admin/inspectors $65,000 ea $87, * EAB Coordinator 2014 Sub Total $3,818, $2,600, * 6500 Ash removals averaging $400/tree 2015 $2,400, replacement 2015 $506, * 2530 injections of 2015 $195, * 3 contract ea $87, * EAB Coordinator 2015 Sub Total $5,788, $3,000, * 7500 ash tree removals averaging $400/tree 2016 $2,800, replacement 2016 $336, * 1680 tree 4 contract administrators/inspectors 2016 $260, $87, * EAB Coordinator 2016 Sub Total $6,483, $3,000, * 7500 ash tree removals averaging $400/tree 2017 $2,800, replacement 2017 $506, * 2530 injections of 2017 $260, * 4 contract 2017 $87, * EAB Coordinator 2017 Sub Total $6,653, Est $2,000, Est $2,000, General EAB related works (removals/replacements/woodlots) General EAB related works (removals/replacements/woodlots) cnon-discretionary expense (removals and staffing) are being forecasted as years where staff are able to retro fit woodlots, re instate canopy losses, remove the remaining ash trees and continue bi-annual injections Estimated expenses for EAB *Non-discretionary (tree removals and staffing): $16,942, Replacement planting: $9,800,000.00

6 $527, in tree planting money is expected (at the end of2013) to provide tree replacements city-wide through a settlement received for tree removals incurred during works completed by the Trans-Canada Pipeline Corporation. Dead ash removals are non-discretionary on both public and private lands. As forecasted above, the removals and required administrative support to govern this process comprises over 70% of the total estimated budget to mitigate the effects of EAB. The majority of EAB related work is expected to be completed by contracted forestry staff due to a current staff compliment 60% smaller than that of neighbouring GTA municipalities of similar size. Brampton's Urban Forestry Team has struggled through 2013 to manage storm related damages and customer call volume. To better illustrate that current staffing levels do not have the capacity to manage EAB related concerns in addition to typically high volumes of general service requests, the following chart compares similarly sized local municipalities and their full time staffing to manage general tree related issues: Urban Forestry Staffing Population u Full-time Staff 8CC.0C0 r 50 7C0.OC0 6c:;.cc3 1C0.0C0 Mississauga Northwest Toronto Hamilton Brampton (North York) To augment internal resources to deal with EAB, Mississauga has imposed a tax levy to fund their reaction to the EAB issue totalling $51 million. The City of Hamilton has placed a price tag of approximately $26 million on their EAB response and the City of Toronto requires $110 million for EAB.

7 E1-1-1 Privately Owned Ash Trees: Land owners are responsible for the safe removal of any privately owned ash trees. The City has suspended the need forany type of permitting requirement for the removal of privately owned ash that would otherwise require an application and $50.00 fee payment to permit the removal of trees exceeding 30cm in trunk diameter. Residents are required to receive confirmation that the removal is an ash variety. To assist residents with EAB issues, communication initiatives have addressed what to expect with regards to ash losses and web-based information on the selection of a private arborist can be found on the City's web site. Land owners who permit their trees to decay to the point that their property, or neighbouring lands are in danger of falling limbs, may be compelled by City staff to remove the tree by way of an 'order-to-comply' issued by enforcement staff. Corporate Implications: The environmental disaster brought on by the Emerald Ash Borer will cost the Corporation a projected minimum of $16 million bv Replacement planting/canopy recovery will cost an additional $10 million. Any funding shortfalls to mandatory removal operations will have significant short and long-term implications: As dead tree removal is a non-discretionary action within an urban area, lack of funding will force the suspension of typical customer service operations such as pruning and replacement planting. Internal resources will be forced to remove dead/dying ash prior to them becoming a danger and will not have the staffing capacity to respond to expected increase in EAB related tree removals. Replacing the canopy cover lost due to EAB is seen as the one 'absolute' with regards to mitigating the damages caused by this infestation. Failure to promptly replace trees prolongs Brampton's environmental, social and economic* recovery related to mass loss of tree cover. Trees exceeding 20cm in diameter have been shown to have a significant impact on residential real estate value. Tree lined streets increase housing values up to 5% - 8% from baseline price estimates.1 1Value increase percentages provided bythe CMHC (Canadian Mortgage and Housing Corporation), corroborated by; the international Society of Arboriculture and the City of Toronto.

8 ei-i-s Financial Comments: There is currently no funding available for this initiative. In order to fund this initiative, the 2014 Capital Budget would need to be increased, Tax Funded projects would need to be deferred or mitigation measures would need to be identified. The recommended 2014 Capital Budget includes $18.8 million of Tax Base Funding Projects, which has already been reduced by $3.4 Million as part of the 2014 Mitigation Measures. Financial Implications: 1. Tree Removal ($2.1 Million, 2014 ONLY) would require a reprioritization of the 2014 Tax Funding projects or equivalent Mitigation Measures. 2. Tree Removal ($16 Million, ) would require a 0.94% Special Tax Levy Increase in 2014, which would be required until 2019 when the program is complete and the Special Tax Levy can be eliminated. This would increase the existing 2014 Budget from 1.9% to 2.9%. 3. Tree Removal & Replanting ($26 Million, ) would require a 1.5% special tax levy, which would be required until 2019 when the program is complete and the Special Tax Levy can be eliminated. This would increase the existing 2014 Budget from 1.9% to 3.4%. Options for Consideration: a. Divert funds from the Region of Peel that were intended for use as Brampton's portion of Conservation Authority funding (this was attempted and unsuccessful); b. Provide for 2014 Capital program (non-discretionary) funding in the amount of $2.1 million to resource required ash removal operations only; c. Provide for an annual capital program budget totaling approximately $26,000,000 to provide funding for removals and reinstatement over the next 5 years; d. Impose a 1.5% ($5.2 million) Tax Levy for approximately 5 years to provide project funding for removal and reinstatement.

9 El-1-1 Conclusion: Brampton's response to the Emerald Ash Borer problem is consistent with other GTA municipal reactions and has been verified by an external consultant's forecast of EAB implications. Brampton currently has no funding for 2014 and beyond to deal with the EAB issue. While EAB effects and forecasted long-term costs were fairly consistent between municipalities of similar size, the research did highlight that Brampton's Urban Forestry team is significantly under-resourced as compared to other municipalities. Emerald Ash Borer has quickly established itself as one of the most environmentally devastating invasive pests in North American history. Gary Lintojii Manager, Central Operations - Parks Gene'Duval Director, Parks Maintenance &Operations